In his first keynote speech since taking the reins at the satellite broadcaster, Mr Ball accused ITV and the BBC of launching channels based on repeats. The networks were "in scattergun mode" and had not progressed beyond the position that BSkyB was in 10 years ago.

Speaking at the Guardian Edinburgh International Television Festival, Mr Ball told the industry that the BBC was guilty of a "me too" philosophy. Its News 24 channel cost three times as much to run as Sky News and was subsidised by the licence fee.

Drawing a comparison with predatory pricing in the newspaper industry, Mr Ball said a well-funded public service broadcaster could do great damage to companies trying to make a profit in the multi-channel era.

Turning to ITV, Mr Ball accused the commercial broadcasters of failing to understand today's television world. Channels had to differentiate themselves by picking off niches, he said.

However, Mr Ball was forced into the embarrassing disclosure that demand for BSkyB's digital service has not suffered despite plans for a digital supplement to the licence fee. BSkyB has warned repeatedly that proposals for the digital levy being considered by the government would damage demand for digital TV.

Mr Ball was speaking as BSkyB announced sharply increased investment in original programming. The company said that within two years, half its programming budget for Sky One would be spent on original productions. The channel's present budget is £65m, of which £20m is for original programming.

The company is also spending £25m on film production this year, which will become an annual commitment, and £30m on drama and comedy for Sky Premier.

Mr Ball's remarks brought a sharp riposte from David Docherty, deputy director of television for BBC Broadcast. In a series of pointed exchanges Mr Docherty said it did BSkyB "no harm" to have a fully funded British competitor on news

Rejecting suggestions that BBC News 24 cost more to produce than Sky News, Mr Docherty said BSkyB's own accounts were incomplete on its costs. He said: "There are lies, damned lies and annual accounts."

The BBC also came under fire over the proposals for a digital licence fee supplement. Malcolm Wall, chief executive of United News and Media's broadcasting and entertainment division, said the supplement was "anti-competitive" and that the commercial TV industry may complain to the competition authorities.